Analyzing Traeger (COOK) and Its Rivals

Traeger (NYSE:COOK) is one of 150 publicly-traded companies in the “Household Durables” industry, but how does it contrast to its competitors? We will compare Traeger to similar businesses based on the strength of its risk, profitability, analyst recommendations, institutional ownership, valuation, dividends and earnings.

Analyst Recommendations

This is a summary of recent ratings and price targets for Traeger and its competitors, as provided by MarketBeat.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Traeger	1	5	1	0	2.00
Traeger Competitors	1807	7425	8151	316	2.39

Traeger presently has a consensus price target of $50.50, suggesting a potential downside of 2.33%. As a group, “Household Durables” companies have a potential upside of 42.61%. Given Traeger’s competitors stronger consensus rating and higher probable upside, analysts clearly believe Traeger has less favorable growth aspects than its competitors.

Institutional and Insider Ownership

46.8% of Traeger shares are owned by institutional investors. Comparatively, 53.6% of shares of all “Household Durables” companies are owned by institutional investors. 16.2% of Traeger shares are owned by company insiders. Comparatively, 18.3% of shares of all “Household Durables” companies are owned by company insiders. Strong institutional ownership is an indication that hedge funds, large money managers and endowments believe a company is poised for long-term growth.

Volatility and Risk

Traeger has a beta of 1.93, meaning that its stock price is 93% more volatile than the S&P 500. Comparatively, Traeger’s competitors have a beta of 1.76, meaning that their average stock price is 76% more volatile than the S&P 500.

Profitability

This table compares Traeger and its competitors’ net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Traeger	-23.23%	-13.76%	-3.59%
Traeger Competitors	-2.67%	-17.12%	1.19%

Earnings and Valuation

This table compares Traeger and its competitors gross revenue, earnings per share and valuation.

	Gross Revenue	Net Income	Price/Earnings Ratio
Traeger	$484.98 million	-$115.18 million	-1.23
Traeger Competitors	$127.77 billion	$320.74 million	9.24

Traeger’s competitors have higher revenue and earnings than Traeger. Traeger is trading at a lower price-to-earnings ratio than its competitors, indicating that it is currently more affordable than other companies in its industry.

Summary

Traeger competitors beat Traeger on 11 of the 13 factors compared.

Traeger Company Profile

Traeger, Inc., together with its subsidiaries, designs, sources, sells, and supports wood pellet fueled barbecue grills for retailers, distributors, and direct to consumers in the United States. Its wood pellet grills are internet of things devices that allow owners to program, monitor, and control their grill through its Traeger app. The company also produces a library of digital content, including instructional recipes and videos that demonstrate tips, tricks, and cooking techniques that empower Traeger owners to progress their cooking skills; and short- and long-form branded content highlighting stories, community members, and lifestyle content from the Traegerhood. In addition, it provides wood pellets that are used to fire the grills; rubs, spices, and sauces; accessories, such as pop-and-lock accessory rail covers, drip trays, bucket liners, storage bins, and shelves; tools to aid in meal prep, cooking, and cleanup, including pellet storage systems, cleaning solutions, barbecue tools, and MEATER smart thermometer; replacement parts; and apparel and merchandise, including t-shirts, hooded sweatshirts, and baseball hats. Traeger, Inc. was founded in 1987 and is headquartered in Salt Lake City, Utah.